Letter of intent (LOI) Legal
Definition
Non-binding proposal sent from buyer to seller stating the buyer's intentions. The LOI is usually drafted and sent after conducting preliminary due diligence and meeting management, and indicates a buyer's strong interest in proceeding with a transaction. Key provisions include purchase price consideration, timing, and exclusivity.
Comments
The letter of intent is more formal than the expression of interest (EOI) letter. See sample below;
Letter of Intent to Purchase a Business - Find Documents
Referring Terms
Exclusivity, No-shop clause, Financing contingencyFor profiles of 1,400+ private equity firms, including portfolio and professional info, please consider a free 30-day trial membership.
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